Well, I like the back-story - though the telepathy thing takes a lot away from the possibilities. What if it had to resort to human senses to find out the murderous scum? Stalking, observing, judging, analyzing, before deciding to move away or in for the kill.

It could even improve its effectivity by instructing others to follow its path, a cult leader of sorts, or the founder of a philosophy...

Well, a nest of them seems to be worth the nuke, a single one, as written, appears in the flamethrower-plasma grenade-HEAP missile range;

Unless the demon part inside gives it more resilience and strength than anatomy would suggest, and as it appears to be able to hide in sewers, hence, is not huge, I'd place it as a threat like, for example, the Starcraft Hydralisk: can rip up an armored car, a tank will shoot it to bits.

It is good that you brought the topic up, but generally, I found applying dice modifiers to love unnecessary - players who care about the characters and NPCs enough to be bothered by the concept of love will act it out - and sometimes deliberately fail rolls; likewise will they succeed without rolling against fear and the like when their loved ones are in danger; often these scenes will be entirely roleplay and no system.

Actually, just enchanting random rocks means that a human simply cannot sneak past goblins, as a precise ring of blue will flare up around his position.
Improving this spell, it could release flashes of light when humans approach, dulling their eyes to the presence of goblins in the dark.

A decent kernel of an idea, plainly written though, and needing some work - presentation, detail, verisimilitude. Also, the name is as if you named London "Imperial Capital 47", and Constantinople "Big City on the Bosporus". Go to Comment

As for the "same race" issue - if the GM and players make characters together, then often, they will be more compatible than the 'every man for himself' approach, where every player makes a PC and then try to fit them together. Likewise, then the approach 'you are all dwarves from the hold of Kazak Pwn' is viable.

Also, why would the PCs in #5 have to be of the same race? They could be from a town with a 50/50 human/gnome ratio, an elven enclave and a dwarven craftsman. Solved.
#10, nobility? An empire the size of Rome will have scores of races within its borders, and the nobility will represent it if it is egalitarian. Humans and elves already have no trouble marrying anyway, and with the wonders of magic, many weird unions become possible.
Along the same lines, #18 can see an extended family with a tiefling, half-elf, aasimar and half-dragon... and Harmandur the dwarf is adopted.

White Raccoon Lodge

In a new town for the first time, the White Raccoon Lodge looks like a comfortable place to spend the night. The owner, however, makes sure to explain to you that there is a curfew after sundown and the door will be locked... from the outside. "We don't want anyone being caught out on the streets after dark," he says.

Now that you think of it, all the doors in this small town did have a crossbar on the outside rather than the inside... You wonder what goes on at night...